Direct Labor Variances Direct Labor Variances

hour. During February, the following activities pertaining to direct labor for the microprocessor were recorded:

$($a$)$ Determine the labor rate variance.

$($b$)$ Determine the labor efficiency variance.

$($c$)$ Determine the total flexible budget labor cost variance.

$

$0$

Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of its microprocessors has a standard labor time of $0\mathrm{.}5$ hour and a standard labor rate of $$15\mathrm{.}50$ per hour. During February, the following activities pertaining to direct labor for the microprocessor were recorded:

Direct labor hours used $2,230$

Direct labor cost $$40,000$

Units of the microprocessor manufactured $4,700$

$($a$)$ Determine the labor rate variance.

$Answer $1$

$0$

Answer $2$

$($b$)$ Determine the labor efficiency variance.

$Answer $3$

$0$

Answer $4$

$($c$)$ Determine the total flexible budget labor cost variance.

$Answer $5$

$0$

Answer $6$